Wednesday, April 18, 2012

Avoiding the Rental Pitfalls in Your COndo Association

Approximately four in 10 homes in suburban America are occupied by renters. If your unit is one of those homes—or about to become one—here are a few tips that will help you, your renters, and the association.

If you are an owner who leases your unit, your Association would like to make the leasing experience successful and positive for everyone by informing you of your responsibilities. This will help preserve your property value specifically and maintain the association’s property value in general.

Your tenants may not be familiar with common-interest community living. Please take a few minutes to explain to them that living in a community association is very different from living in a rental apartment community. Specifically, your tenants, like all residents, are subject to the rules and regulations of the association, and it’s up to you to educate them and see that they comply. The association will assist you in this area, but the responsibility lies with you. We recommend you provide your tenants with written copies of all policies and rules and advise them on the proper use of the association’s facilities. You can obtain copies of these and other useful documents from the manager.

Follow these simple steps and you, the tenants and the association will all have a positive community association living experience:

  • Talk to the Manager

The association manager can give you important information about what the association requires of owners and renters and tips about the rental process that will be very helpful, especially if you’re leasing for the first time. The manager has sample leases you can use and copies of the association rules to give to your tenants.

  • Check the Documents

Make sure you comply with the association’s governing documents—the bylaws and CC&Rs. They may contain special requirements for nonresident owners who lease their units.

  • Educate Prospective Tenants

Be sure to inform prospective renters about the special considerations of living in a community association before they sign a lease. The association will be happy to give you a copy of the rules to pass along. If the tenant does not correct a violation, the association will contact you and expect you to remedy the violation using the recourse available to you through your lease agreement. If you are unable to correct the violation, the association may pursue appropriate legal action against the tenant, and possibly against you.

  • Use a Lease Addendum

No doubt you’ll have your renters sign a lease. Please attach an addendum to your lease that covers the specifics of the community association and require renters to adhere to association rules. This is very important because it gives you and the association a means of enforcement. A good lease or lease addendum should support the community by-

  • Requiring the tenant to obey the bylaws, rules, and regulations of the association. (Attach copies!)
  • Requiring the tenant to pay fines for association rule violations.
  • Requiring the tenant to vacate if community association regulations are repeatedly violated.
  • Keep the Association Informed

The association asks that you provide the manager with the names and contact information of your tenants. The association will add your tenants to its mailing list, and they will receive the newsletter, invitations to participate on committees, notices of social activities and general association-related information. This information will also be used in case of emergency. Once the lease is signed, give a copy to the association manager or a board member. The more information you provide about your renters, the more successful they will be in our community. Please provide the following information to the association:

  • Renter’s name (and children or roommates) and phone number.
  • Renter’s email address, employer, or other pertinent details.
  • Renter’s vehicle description and license plate numbers. This will allow us to provide parking information.
  • The number and type of pets, if any.
  • Your forwarding address and phone numbers.
  • Encourage Tenants to Participate in the Association

Be an advocate for your tenants with the association. Make sure they have access to the recreational and parking areas and that they have the keys and passes they need. Please give them the name and phone number of our association manager.

Even though tenants have no vote on association matters, they are an important part of our community. Make them feel welcome, provide information that will familiarize them with the association, and encourage them to participate in community activities whenever possible. Today’s renters may be tomorrow’s owners—or even board members. The more we all do to promote a sense of belonging for renters, the more positive and successful the leasing experience will be for everyone.